Setting prices higher than the competition without providing customers with the
perception of receiving greater value will lead to lower overall volume.
Off-the-job training is delivered to employees while they perform their regular jobs.
The SCAMPER tool is effective for solving problems only in traditional ways.
One way to go about obtaining committed customers prior to start-up is to specifically
go into competition with one’s employer.
Informational plan focuses on the market and operationalization of a new invention.
In the decline stage, sales and profits of the firms in an industry begin a falling trend.
A jewelry store promises to deliver custom-made wedding rings to a buyer within 2
weeks. However, it charges ten percent of the sales price in advance. In this example,
which of the following techniques is the store using to increase cash inflows?
A. It is offering discounts to customers for prompt payment.
B. It is taking deposits and progress payments.
C. It is factoring all receivables.
D. It is taking on noncore paying projects.
Which of the following is an example of a special type of liability insurance that covers
losses from harm caused during the performance of a profession?
A. Unemployment insurance
B. Errors and omissions insurance
C. Disability insurance
D. Worker’s compensation insurance
A(n) _____ refers to a middleman business which represents a manufacturer’s products
or services to other business-to-business middleman firms.
A. retailer
B. wholesaler
C. manufacturer
D. agent
_____ is the ratio measure of how well a firm does in using its inputs to create outputs.
A. Productivity
B. Feedback
C. Factoring
D. Quality
The characteristic that separates one company from another in product, price,
promotion and/or distribution, is referred to as _____.
A. differential advantage
B. volatility
C. liquidity
D. external legitimacy
A law firm needs to present a business plan to government officials. Which of the
following is most likely to be expected by the officials in the business plan?
A. High growth rate
B. Compliance with regulations and laws
C. Intellectual property protection
D. Competitive advantage
A grant by the U.S. government to an inventor for an idea that is new, useful, and
nonobvious, giving the inventor the exclusive right to make, use, or sell his or her idea
is called a:
A. trade secret.
B. copyright.
C. trademark.
D. patent.
Which of the following is true of insuring the property of a business?
A. All the value of a property has insurable value.
B. The value of land is the most commonly insured property.
C. The value of the historical significance of a building often cannot be insured.
D. The lower the deductible, the lower the policy premium payments will be.
Due to which of the following characteristics a news story is most likely to get public
importance?
A. Trendiness
B. Proximity
C. Currency
D. Cultural resonance
In the hierarchy of business outcomes, the worst possible outcome is:
A. sell off.
B. pass off.
C. walkaway.
D. bankruptcy.
_____ is a measure of the amount of debt relative to total investment.
A. Cost of capital
B. Financial leverage
C. Optimum capital structure
D. Financial risk
Tax management:
A. focuses on generating cash to cover likely estate taxes.
B. focuses on minimizing estate tax payments.
C. focuses on transferring assets to heirs when the asset costs are low.
D. focuses on giving the firm as a gift to someone who will keep the business a going
concern.
In the SCAMPER tool, “R” stands for:
A. restitution.
B. resolution.
C. reverse.
D. result.
“WaterVision Cams: Atlanta’s Only Underwater Cameras” is an example of a(n) _____.
A. mission statement
B. executive summary
C. elevator pitch
D. tagline
The computers at a graphics design company were stolen recently. Which of the
following insurance that the company holds will repay the losses incurred?
A. Product liability insurance
B. Crime insurance
C. Surety bonds
D. Credit insurance
An ideal situation is where a business receives new inventory just as the last unit of the
previous order is sold. However, this rarely occurs because the:
A. inventory level is not affected by demand.
B. delivery times never fluctuate.
C. sales volumes are not constant.
D. estimate never exceeds demand.
What are the limitations of a balance sheet?
What are the advantages of using equity capital in a business?
What are the pros and cons of hiring a full-time versus a part-time employee?
Is accounting important to small businesses? Explain.
What are the different techniques used by a business to increase cash inflow and
decrease cash outflow?
Describe the goals of financial management in preparation for a business exit.
Differentiate between single taxation, double taxation, pass through (taxation), and
check the box taxation.
Describe the different stages of a small business life cycle.
Explain the concept of company and bank cash balances. What are the two types of
delays in the movement of money among depositors and banks?